SASKATCHEWAN INTRODUCES SALES TAX REBATE FOR NEW HOME SALES

Did you hear that the Saskatchewan government rolled out a PST rebate on new homes? Many people are wondering what this means when it comes to a new home purchase so our Trademark Controller, Ryan, put together some key points for you.

Here's some of the highlights:

Up to a 42% rebate on the PST paid on a new, previously unoccupied (newly constructed home) where the purchaser takes possession on or after April 1, 2020 to April 1, 2023.

The rebate is available on newly-constructed homes with a total price of less than $450,000, before taxes and excluding the value of the land and the price of any furniture, furnishings and appliances.  The exception of appliances when: 

     (a) they form part of an all-inclusive single consideration and are not stated separately on the invoice or statement provided by the builder; 

     (b) they are of the type of appliances normally provided by the builder for similar newly - constructed homes; and, 

     (c) the purchaser did not, according to the agreement with the builder, have the option to take a discount on the total contract price in lieu of the appliances. 

The amount of the rebate is reduced for homes with a total price between $350,000 and $450,000, with no rebate available for newly-constructed homes with a total price of $450,000 or more.   

For purposes of the PST Rebate for New Home Construction, a newly-constructed home includes any of the following that results from a new housing start: 

     a detached or semi-detached single-unit house; 

     a duplex, condominium unit, or a townhouse; 

     a unit in a co-operative housing corporation; and, 

     a mobile home (including a modular home).   

In order to be eligible for the rebate, the newly-constructed home must be your primary place of residence. Your primary place of residence is generally a home that you own, jointly or otherwise, and that you intend to live in on a permanent basis. 

Application and receipt of the rebate can be accomplished in 2 ways:

     1. the purchaser can apply for the rebate themselves after taking possession of the home by submitting the proper Application form to the Ministry of Finance - this could be             like a "cash back" option for the purchaser

   2. the purchaser can assign the rebate to the builder and the builder in turn credits the purchase price by the amount of the PST rebate

RYAN MOORE, CPA, CA
Controller
Trademark Homes